With claiming of the Arbitrum $ARB airdrop happening in approximately 10 hours ( 9PM SGT/ UTC+8), crypto twitter has been dominated by threads on the best way to play the Arbitrum airdrop. As users rush to claim over 1 billion tokens, there is bound to be congestion, network delay, and possibly massive slippage in the first few minutes.
Regardless of whether you have planned to sell, HODL, or even buy more on launch, it’s important to understand the conditions you will face immediately after claiming begins. As such, let’s go through 3 tips to help you maximize the potential for your airdrops.
Preapproving The $ARB Token and DEX Smart Contracts
If you want to sell the drop, the best way to beat the crowd is by pre-approving all related tokens and smart contracts. This includes the Arbitrum token on the Arbitrum network, as well as routers via UniSwap, 1inch, or your preferred decentralized exchange.
The token address for the $ARB token on various networks and the initial airdrop distributor can be found here. You can add this address 0x912CE59144191C1204E64559FE8253a0e49E6548 to your metamask wallet to add Arbitrum-native $ARB as a token.
Twitter user @OlimpioCrypto gives an in-depth explanation on how to pre approve the token and interact directly with smart contracts to bypass ahead of the Arbitrum airdrop.
A much simpler alternative is to use DefiLlama’s Arbitrum aggregator to instantly approve the $ARB token and related smart contracts. Once the airdrop is out, using this interface will allow you to instantly claim and sell your $ARB tokens on the open market.
Yield Farming With Additional Incentives
In a recent Arbitrum update by humble farmer Taiki Maeda, he speculated that Arbitrum would initially trade at approximately $1, and has no plans to sell unless it at least doubles or triples in price.
If you’re similar to Taiki and want to hold your Arbitrum airdrops, providing liquidity on decentralized exchanges may be for you. Not only will these likely get incentives from the DEXes on Arbitrum in a bid to draw liquidity, but the hype around $ARB would likely translate to a large amount of swaps for the next few days, earning LPs huge fees.
Kyberswap, a decentralized exchange on Arbitrum, has already announced liquidity mining campaigns on their platform, with a possible 5% fee tier (5% of all trades).
With Optimism’s $OP airdrop resulting in over US $100,000,000 in trading volume in one day, liquidity providers could stand to cumulatively earn over $5,000,000 in fees on launch day.
Thanks to Uniswap V3’s single-sided staking, users can also already contribute to the LP pool via ETH or USDC. However, if you’re not DeFi-Savvy, it may be better to avoid trying to game the system in case you fall for honeypot traps on fake Arbitrum-ETH pools.
Some protocols may also voluntarily give their $ARB allocation back to their community in the form of airdrops or yield-farming incentives, and it may be wise to keep an eye out for the top $ARB receivers across the network.
Prior to the official launch of Arbitrum’s $ARB, several exchanges have announced the listing of the $ARB token, or an Arbitrum IOU, which allows traders to speculate on the eventual price of $ARB.
These are trading for as much as $6 on several exchanges, but several twitter users have revealed that the current OTC (Over-The-Counter) prices for $ARB has stabilized around $1.
Regardless, the launch of $ARB will likely be followed by a huge dump in token price as users seek to liquidate their free coins for other cryptocurrencies like $ETH and $USDT. Furthermore, massive slippage due to low liquidity conditions could lead sellers to lose out on their trades.
Instead of simply trading through the easiest markets, twitter user Alex Wacy shows us that $ARB could trade at different prices on different platforms. Choosing the best platform for your trade could net you an additional 100% gain on your $ARB.
To do so, he recommends leveraging Alchemy to create a custom RPC network to claim your $ARB in order to move it quickly to your preferred exchange.
During the airdrop, taking advantage of the price discrepancies between exchanges could also be a profitable trade, buying on a platform that lists $ARB cheaply, and selling it on a platform where $ARB is expensive.
While CT is speculating that $ARB will launch at approximately $1, there’s no telling how much it will be worth in the short term.
On one prediction market, 69% of users are betting that $ARB will be worth more than that within just a week, backed by the network’s high TVL and large amount of on-chain transactions.
Regardless, studies have shown that most users are better off selling their airdrops immediately after receiving them. Whether you believe that $ARB is a potentially a top 10 project or not, buying in after the initial dip, and not fomo-ing during the initial euphoria period, could be the best strategy for $ARB.
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: ChainDebrief